Results TMG First Quarter 2010
Compared to the first quarter of 2009:
- Normalised EBITA result increased by € 6.1 million to € 10.7 million.
- Revenues declined by € 5.6 million (3.8%) to € 140.5 million.
- Operating expenses were € 12 million (7.9%) lower.
- Normalised EBITA margin increased to 7.6% (first quarter of 2009: 3.1%).
- Cash position improved by € 8.2 million.
TMG publishes its interim management statement over the first quarter of 2010. TMG’s activities are subject to seasonal fluctuations. During the first and third quarter of the year, advertising revenues are lower than during the remainder of the year. The single-copy sales of De Telegraaf and Keesing Media Group’s publications are significantly higher in the third quarter. Normally the fourth quarter is the most important quarter for advertising revenues.
The consolidated statement of comprehensive income (see appendix) is reported on the basis of continued operations. The result from discontinued activities is presented separately for the first quarter 2009. This concerns part of the Dutch magazines portfolio, Media Librium, activities in the Ukraine (terminated in March 2009) and Keesing Reference Systems. The activities discontinued in 2010 are of no significant influence.
The normalised EBITA result increased from € 4.6 million to € 10.7 million, primarily as a result of the cost reduction programme started in 2008 and the discontinuation of the Sunday edition of De Telegraaf. The effect of the measures taken earlier was entirely discernible in the first quarter of 2010, although this impact will diminish over the course of the subsequent quarters of 2010.
The EBITA margin was 7.6% for the first quarter of 2010 (first quarter 2009: 3.1%).
|In millions of Euros||1/1-31/3 2010||1/1-31/3/2009|
|Printing for third parties||0.8||0.9|
Revenuesdeclined by 3.8% to € 140.5 million, mainly as a result of limitedly lower advertising revenues. Circulation revenues increased by € 0.3 million. Revenues from digital activities fell compared to the first quarter of 2009 by € 0.5 million to € 9.7 million as a result of a decline in revenues from television productions. Internet revenues (including games) remained virtually the same.
Personnel costsdeclined by € 7.2 million as a result of the programme to reduce the number of FTEs. The programme is expected to be completed in 2010. Employment at the continued activities fell by more than 300 FTEs compared to 31 March 2009 baseline. The revenues per employee rose by 9.7% to on average € 50,000 in the first quarter of 2010. Costs for temporary personnel declined by € 1.3 million compared to the first quarter of 2009.
Other operating expensesdecreased by € 3.1 million due to lower distribution costs as a result of the discontinuation of the Sunday edition of De Telegraaf and more efficiency in the distribution network.
The result of associates includes TMG's 6% share in the result of ProSiebenSat.1 Media AG (ProSiebenSat.1) for the first quarter of 2010 in the amount of positive € 1.3 million (first quarter of 2009: negative € 0.1 million). The revenues of ProSiebenSat.1 rose 5% to € 658.4 million in the first quarter of 2010. The net result rose to € 21.2 million.
In addition, the result on the sale of Keesing Reference Systems as of January 2010 amounted to € 1.7 million.
The result from discontinued activities was negative € 0.7 million in the first quarter of 2009. Magazine JAN was sold in February 2009. The other discontinued activities were sold or stopped in the second and third quarters of 2009.
The cash position rose by € 8.2 million in the first quarter of 2010, to € 64.7 million. A positive cash flow from operations of € 7 million and revenues from the sale of Keesing Reference Systems brought about further improvement in the cash position.
The dividend of € 0.35 per share will be paid during the second quarter of 2010. This represents an outgoing cash flow of € 16.7 million.
The increase in the result during the first quarter cannot be automatically projected for the rest of the year as a number of important measures were already implemented in the course of 2009. The impact of the cost reductions on the results will in comparison with last year therefore decrease over the coming quarters.
The decline in advertising revenues has been decreasing over the past four quarters (second quarter of 2009 through first quarter of 2010). In comparison to the same period in the previous year, the development is as follows: -20%, -16%, -12% and -6%.
Primarily thanks to the effects of the measures taken earlier, an improvement to the normalised EBITA margin to over 9% is expected for 2010 as a whole (2009: 8.1%). The margin improvement is under the assumption that the decline in advertising revenues during the rest of the year will be limited to the decline experienced during the first quarter (6%).